The FDIC approved a $2.68 billion operating budget on Tuesday, an 18 percent decrease from last year’s budget.
The budget includes a reduction of 687 staff positions, and the FDIC plans to make further cuts in 2014 and future years, according to Credit Union Times.
“The budget approved today is consistent with the slow but steady recovery in the U.S. banking industry over the past three years,” Martin Gruenberg, the chairman of the FDIC, said, Credit Union Times reports.
The National Credit Union Administration’s 2013 budget, however, will increase 6.1 percent in 2012. While the FDIC will have 8,026 positions in 2013, NCUA has approximately 1,262 full-time employees.
The budgets are difficult to compare, as the FDIC includes receivership funding in its budget while the NCUA separates expenses associated with failed credit unions in its share insurance fund, according to Credit Union Times.
The FDIC’s budget increased 106 percent in 2009 and by 56 percent in 2010, due primarily to the failure of financial institutions. Since 2010, the FDIC’s budget decreased three percent in 2011, 15 percent in 2012 and 19 percent for 2013.
When receivership expenses are removed from the FDIC’s budget, however, the regulator has increased its operating budget at a faster pace than NCUA within the same timeframe.
In 2009, the NCUA’s operating budget grew by 12.1 percent as the FDIC increased its operating budget, minus receivership funding, by 18 percent. The NCUA’s 2010 budget reflected a 13 percent increase compared to another 18 percent increase in the FDIC’s budget for the same year.
Budgets for 2013 reflect a changing trend, as the FDIC’s 2013 operations budget reflects a 0.1 percent increase from 2012 and the NCUA’s 2013 budget increased 6.1 percent from 2012, according to Credit Union Times.
John Fairbanks, a public affairs specialist at the NCUA, said that the 2013 budget maintains staffing at 2012 levels, adding that the agency used zero-based budgeting to develop the latest budget plan, requiring justification for each potential expense.
“As a result, the 2013 NCUA budget amounts to just under 29 cents for every $1,000 of credit union deposits, down from almost 38 cents in 2000,” Fairbanks said, Credit Union Times reports. “Because of our efforts to keep spending in check, this ratio will fall for the second year in a row in 2013.”